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Affirm Holdings (AFRM) Rises As Market Takes a Dip: Key Facts

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Affirm Holdings (AFRM - Free Report) closed at $68.56 in the latest trading session, marking a +1.68% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.37%. Elsewhere, the Dow lost 0.74%, while the tech-heavy Nasdaq lost 0.03%.

The operator of digital commerce platform's shares have seen a decrease of 1.37% over the last month, not keeping up with the Computer and Technology sector's gain of 4.58% and the S&P 500's gain of 2.68%.

Analysts and investors alike will be keeping a close eye on the performance of Affirm Holdings in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.11, marking a 178.57% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $839.88 million, up 27.41% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.05 per share and revenue of $3.19 billion, indicating changes of +102.99% and 0%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Affirm Holdings. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 7.74% upward. Currently, Affirm Holdings is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Affirm Holdings is at present trading with a Forward P/E ratio of 88.98. Its industry sports an average Forward P/E of 28.48, so one might conclude that Affirm Holdings is trading at a premium comparatively.

Investors should also note that AFRM has a PEG ratio of 2.49 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.18.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 30% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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